As unfortunate as it may be, there could come a time when you have no choice but to look into the benefits of filing for bankruptcy.
While there are things you should first do, such as negotiating with your lenders, all roads could point toward bankruptcy.
As an individual, Chapter 7 and Chapter 13 are the two most common options. The primary benefits of Chapter 7 bankruptcy include:
- The opportunity to receive a fresh start: Once you discharge your debt, you're in position to start at square one. This could be just what you need to finally get your finances in order.
- Keep your future income: Chapter 13 bankruptcy calls for the use of a repayment plan, meaning you'll spend some of your income paying back your debts. You don't have to do this with Chapter 7 bankruptcy.
- No limit on how much debt you can have: There is a debt limit with Chapter 13 bankruptcy; however, Chapter 7 doesn't impose this.
- It's fast: Did you know that the discharge of debt through Chapter 7 bankruptcy could occur within two to three months of filing? This means a fresh start is closer than you ever imagined.
There are many reasons to opt for Chapter 7 bankruptcy, so make sure you learn more about the benefits as you ponder this big financial decision.
If you come to the conclusion that this is the best way to improve your finances, learn more about the Chapter 7 bankruptcy process, the steps you need to take and your legal rights as a consumer.
Source: FindLaw, "Reasons to File for Chapter 7 Bankruptcy Instead of Chapter 13," accessed May 15, 2018